Upgrading or investing in new equipment can help your business grow and become more profitable. You may need to invest in more modern technology, machinery, or vehicles to lead in your market.
Since the beginning of the Covid-19 pandemic, existing levels of business investment have fallen, with a reduction of 11.6% between 2019 to 2020. This has slowed productivity growth significantly.
The UK Government has recognised this and now offers enhanced first year Capital Allowances of 130% to encourage businesses to invest now. As a result, this has the potential to boost economic growth and balance the business cycle.
There are various advantages to investing in new business equipment. This aids in the establishment of a successful business.
Productivity and Efficiency
Investing in up-to-date equipment give the business the best chance of increasing productivity and revenue. This also boosts the asset value of a company giving more security and business financing choices in future.
Increasing the quality and quantity of the product and services that you offer will enable you to serve more customers, boost revenue streams, and help you to expand your business into new marketplaces.
Promotes a good working environment
Investment in new business equipment gives employees the right tools and equipment to work efficiently. Upgraded equipment never let a business fall behind the competition and increases the confidence of employees to perform their job well.
Improve your workplace safety
Keeping equipment up to date reduces the risk of operational failure, and improves the Health, and Safety environment. Retaining outdated and inefficient equipment will hold your company back.
Companies investing in qualifying new plant and machinery assets till 31 March 2023, will be able to claim a 130% super-deduction capital allowance. They will also get a 50% first-year allowance for qualifying special rate assets.
Invest in new equipment to secure your businesses future. Every business relies on growth and development. Hence investment in modern equipment can help a business to grow and expand its revenue streams.
At Vision Asset Finance we are committed to facilitating competitive financing to companies wishing to spread the cost of new business equipment.